US-India nuclear pact: Done deal or cracked egg?

US-India business relations have been increasing at breakneck speed. The emphasis within the US business community on creating ties with India is remarkable. Indra Nooyi, chairman and CEO of PepsiCo (and Fortune magazine’s Most Powerful Woman of 2007) stepped up to chair the US-India Business Council. The council is promoting a bilateral investment treaty to enhance greater investment flows in both directions.

Dow Chemical has moved to create a US$100 million global research and development centre in Pune: a facility that will rival those in the US and Europe. Lockheed Martin has offered a bid to the Indian Air Force for the multi-role combat aircraft. Boeing has increased its presence with a US$100 million maintenance centre in Nagpur and is working with Air India on a US$75 million engineer and pilot-training institution in Mumbai. Having already sold US$25 billion in civilian carriers, Boeing estimates sales of over US$86 billion in aircraft over the next 20 years. In the military arena Boeing is working on sales of the F/A-18 Super Hornet combat aircraft, P-8 Long Range Reconnaissance Aircraft, Chinook CH-47 helicopters, and Apache attack helicopters.

High profile deals

Best Buy, the US electronics retailer, is looking at entering India, and Bharti and Wal-Mart have launched a retail joint venture. Deals in all sectors are closing in India as well as in the US.

Wayne Rogers is a senior adviser in the international law firm of Sonnenschein Nath & Rosenthal, where he specializes in international trade and cross-border transactions. He may be reached at +1-202-408-6478 or wrogers@sonnenschein.com.